Skechers second quarter financial results (ended June 30, 2019) are filled with good numbers. Highlights include:
- Sales of $1.259 billion, an increase of 10.9 percent, or 13.7 percent on a constant currency basis
- International sales increased 19.8 percent, or 25.2 percent on a constant currency basis
- Comparable same store sales increased 4.9 percent, including increases of 4.2 percent domestically and 6.7 percent internationally
- International sales represented 55.7 percent of total sales
- Diluted earnings per share of $0.49, an increase of 69.0 percent
“As the world continues to become closer and digital becomes a critical means of communicating and embracing trends to tell your brand’s story, it’s no longer what is happening in one market that matters; it’s what’s happening across all markets. We’re continuing to strategically view our business with a global lens as trends are traveling faster,” states Robert Greenberg, CEO of Skechers. “Specifically, many of our key product styles are introduced at virtually the same time around the world, with nuances in certain markets, giving us the ability to replicate our success around the globe.
Greenberg cites broad acceptance of its women’s and men’s sport and streetwear lines, as well as with the resurgence of its GOwalk collection and fresh new Skech-Air styles. “Our focus continues to be on comfort, innovation, style and quality as we design our diverse collection,” he adds. “Our efforts in the Skechers Performance division resulted in three awards in the second quarter—Gear of the Year from Outside Magazine for Skechers GO Run 7 Hyper, and Best of Outdoor Retailer from Shape and Editors’ Choice Outdoor Retailer from Runner’s World for our Skechers GO Run Maxroad 4 Hyper.”
“We experienced growth in every region, with the biggest dollar increases coming from India, the Middle East and China, as well as in Mexico with the conversion of the business to a joint venture,” states David Weinberg, COO of Skechers. “In our direct-to-consumer channels, we saw monthly sales increases in the quarter, an upward trend that’s continuing in July. Based on feedback from recent account meetings, we are seeing a similar trend within our domestic wholesale business in June and July and continue to believe we’ll have a stronger back half of the year. To support this growth, we are investing in our global infrastructure—including our ecommerce platforms and distribution centers, and designing and developing new products for 2020. As we look forward to the back-to-school and holiday selling seasons, we believe our momentum will continue worldwide.”
